Many elements of global trading have been dominated by the coronavirus this week, as it widens its global footprint. Grain markets are no different and futures markets are definitely reflecting the concerns.

There are fears that a range of measures that relate to the virus may result in decreased global economic activity, which may result in a lowering of global grain consumption.

Such concerns are added to by logistical issues that are already occurring, which could affect any or all commodity prices. So futures prices have softened in recent days. MATIF December wheat dropped from €187 to €184.75/t between last Friday and Tuesday night.

Chicago December wheat was down around €4/t and maize more than double that.

But there had been a bit of a price spike in the previous week.

Looking forward, the market is concerned about current export potential and 2020 production from the Black Sea regions. These may affect EU wheat prices.

Physical prices

That said, physical prices here do not seem to be affected by the current scare. Spot wheat is holding around €203/t and barley is slightly up at €174/t on average.

May prices remain around €205 for wheat, but barley remains more variable at €175 to €178/t – location is a big influence. November prices are holding around €190 to €191/t for wheat and €173 to €175/t for barley.